Pay ZERO tax on capital gains in ’13 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Pay ZERO tax on capital gains in ’13

by on
in Small Business Tax,Small Business Tax Deduction Strategies

That’s not a misprint. You can qualify for a 0% tax rate on some or all of your long-term capital gains realized in 2013. This unique tax break, recently extended by the American Taxpayer Relief Act (ATRA), isn’t necessarily off-limits to taxpayers who are doing OK financially.

Strategy: Figure out how much capital gain you might fit under the threshold. The 0% rate applies to taxpayers who end up in the 10% or 15% regular income tax brackets.

For instance, you may qualify for pref­­erential tax treatment if your busi­­ness incurs a loss this year or you defer a substantial amount of income to future years. Alternatively, you might shift some of your capital gain assets to your children or grandchildren who are eligible for the 0% tax rate.

Here’s the whole story: As part of the “Bush tax cuts,” the maximum tax rate on net long-term gain was lowered from 20% to 15%, beginning in 2003. For taxpayers in the two lowest tax brac...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment